SB 1420: Hydrogen production facilities: certification and environmental review.

(1)The California Environmental Quality Act (CEQA) requires preparation of specified documentation before a public agency approves or carries out certain projects. Existing law authorizes the Governor to certify energy infrastructure projects meeting specified requirements for streamlining benefits related to CEQA. Existing law defines energy infrastructure project for these purposes to include eligible renewable energy resources under the California Renewables Portfolio Standard Program, excluding resources that use biomass fuels. Existing law expressly excludes from that definition of energy infrastructure project any project using hydrogen as a fuel.

This bill would instead exclude from the definition of energy infrastructure project for purposes of the CEQA streamlining benefits eligible renewable energy resources under the California Renewables Portfolio Standard Program that combust, rather than use, biomass fuels. The bill would include hydrogen production facilities and associated onsite storage and processing facilities that meet specified conditions, including that the facilities have received funding from the state or federal government on or before January 1, 2032, and do not use fossil fuel as a feedstock or energy source, do not derive hydrogen from a fossil fuel feedstock and that receive funding from specified state and federal programs within the definition of energy infrastructure project. Because the bill would authorize the Governor to certify additional projects, thereby increasing the duties on lead agencies in conducting the environmental review of energy infrastructure projects certified by the Governor, this bill would impose a state-mandated local program.

(2)Existing law authorizes persons proposing specified electrical generation, electrical transmission, and energy storage projects to apply, on or before June 30, 2029, to the State Energy Resources Conservation and Development Commission (Energy Commission) to certify sites and related facilities as environmental leadership development projects, as specified. Existing law makes a site and related facility certified by the Energy Commission subject to the streamlining benefits related to CEQA with no further action by the applicant or the Governor. Under existing law, the Energy Commissions certification is in lieu of any permit, certificate, or similar document required by any governmental agency and supersedes any applicable statute, ordinance, or regulation, except as specified.

This bill would expand the types of facilities eligible to be certified as environmental leadership development projects by the Energy Commission to include hydrogen production facilities and associated onsite storage and processing facilities that meet specified conditions, including that the facilities have received funding from the state or federal government on or before January 1, 2032, and do not use fossil fuel as a feedstock or energy source. do not derive hydrogen from a fossil fuel feedstock and that receive funding from specified state and federal programs.

This bill would provide that no reimbursement is required by this act for a specified reason.